Alba Reports Q2 2011 Results

Q2 2011 Industry Highlights:

Aluminium demand continues to remain healthy while benefiting from being one of the less sector-dependent base metals. Solid demand in Asia despite earthquake in Japan, increased industrial production in Europe, and demand in MENA region being driven by investments in infrastructure. New downstream facilities are expected to further develop local consumption.

Trading at the London Metals Exchange (LME) reflected dollar fluctuations over high uncertainties around sovereign debts in Europe. The cash average was US$ 2,603 metric tonnes in Q2 2011 with LME ranging between US$ 2,465 in June 24 and US$ 2,772 on April 28.

Q2 2011 Alba Highlights:

Additional recurrent savings surpassed target by US$ 9 million by reaching US$ 44 million in H1 2011 while production was increased by 3.5 per cent and sales by 4.3 per cent for the same period. European sales office in Zurich, Switzerland was opened in June 2011. EBITDA was impacted by 3.4 per cent due to a one time social cost of US$ 22 million recorded in Q2 2011. 100 per cent of raw material requirements for 2011 secured through successful implementation of a multi-source diversification strategy.

Q2 2011 Financial Achievements:

Sales reach US$ 645 million in Q2 2011 as compared to US$ 534 million in Q2 2010. Net Income of US$ 185 million in Q2 2011 as compared to US$ 237 million in Q2 2010. EBITDA at US$ 175 million in Q2 2011 as compared to US$ 147 million in Q2 2010. Net income was impacted by unrealised derivative gains in Q2 partially offset by strong overall performance. Distribution of interim Cash Dividend of 27 Fils per share as proposed by the Board.

H1 2011 Alba Priorities:

Safety Excellence Programme to be launched in Q3 2011. Commitment to maintain sales of Value-Added products above 67 per cent in H2 2011. Preparations underway to launch Six Sigma as part of 2011 Star Programme in September 2011. Complete feasibility studies to determine optimum energy and technology solutions for Line 4 and Line 5 (CREEP) as well as for the Line 6 expansion project by year-end 2011.